Here are the latest spy shots of Jaguar’s next entry-level car undergoing mule testing on UK roads.

This shows Jaguar is working on a new compact to compete with the likes of the BMW 3-series, Mercedes C-class and of course the Audi A4.

With the car being an early XF frankenbuild mule we expect this car to be released late 2014.

According to my investigation Under the bonnet is a 3.0 litre petrol V6 engine which is rumoured to come from the F-Type albeit with no supercharger fitted.

It is difficult to discuss styling at this stage because all the panels have been pillaged from the bowels of Jaguars R&D department.

The XF chassis which this mule sits on is a hint that they will both share the same production line and modular chassis componants so we expect the car to be a rear wheel drive affair.

We expect a sportier version powered by the same 3.0l supercharged version as the current F-Type, along with a hinted AWD offering which is rumoured to be arriving across the range.